Fiscal and Education Spillovers from Charter School Expansion
Matthew Ridley and
CEP Discussion Papers from Centre for Economic Performance, LSE
The fiscal and educational consequences of charter expansion for non-charter students are central issues in the debate over charter schools. Do charter schools drain resources and high-achieving peers from non-charter schools? This paper answers these questions using an empirical strategy that exploits a 2011 reform that lifted caps on charter schools for underperforming districts in Massachusetts. We use complementary synthetic control instrumental variables (IV-SC) and differences-in-differences instrumental variables (IV-DiD) estimators. The results suggest greater charter attendance increases per-pupil expenditures in traditional public schools and induces them to shift expenditure from support services to instruction and salaries. At the same time, charter expansion has a small positive effect on non-charter students' achievement.
Keywords: charter school; competition; fiscal spillover; achievement; synthetic control (search for similar items in EconPapers)
JEL-codes: C10 C36 H23 H39 H75 I21 I22 I28 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lma and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp1577
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